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Brent slides back after a spike above $90 as diplomacy hopes grow
Brent pulled back about $5 after a brief move to a five-week high, as Iran’s comments on diplomacy were read as a possible reset to talks.
Brent crude reversed course on Monday, jumping at the open to a five-week high and breaking above the psychological $90 level, extending last week’s 13% advance, before falling quickly.
The selloff came after fears of further Middle East escalation eased somewhat, with comments from Iran on diplomacy based on national interests interpreted by traders as the potential for a fresh round of negotiations.
Despite the pullback, the outlook described by Action Forex remains broadly bullishly aligned with fundamentals, including ongoing uncertainty around global oil supply, as the Hormuz strait remains closed following the latest escalation after a month of fragile ceasefire.
Action Forex also highlighted technical levels, saying the contract should ideally close above $87.37 to keep near-term gains intact, while a firmer break above $90 could reopen upside targets at $92.69 and $93.90.
Latest closeWTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%